ICICI Direct expects USDINR to meet supply pressure at higher levels. Utilise the upsides in the pair to initiate short positions.
ICICI Direct's currency report on USDINR
The rupee extended gains for third consecutive session rising by almost 21-paise v/s US$. It is expected to open mildly lower today while slump in oil prices would help limit depreciation • Dollar index extended gains against major currencies ahead of April employment data today. Fed has maintained “patient approach” and as such it has reduced the expectations of a rate cut. Today’s April employment data would be keenly watched as further strong data would support US$ in backdrop of weak data from other major economies.
Sovereign benchmark treasury yields declined to 7.39% on Thursday. Yields have witnessed mild cool off as slump in oil prices and recovery in flows supported rupee • US treasury yields rose to 2.54%. Yields remain supported as recent strong US economic data as well as less than expected dovish Fed policy meet has supported yields.
Currency futures on NSE
The dollar-rupee May contract on the NSE was at 69.62 in the previous session. May contract open interest increased 4.05% in the previous session • We expect the US$INR to meet supply pressure at higher levels. Utilise the upsides in the pair to initiate short positions.
|US$INR May futures contract (NSE)||View: Bearish on US$INR|
|Sell US$ in the range of 69.73 -69.79||Market Lot: US$1000|
|Target: 69.45 / 69.35||Stop Loss: 69.93|
|S1/ S2: 69.55 / 69.35||R1/R2:69.75 /69.95|
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